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Made for L ife CSR Report 2011 Basic Commitment Toshiba Medical Systems Corporation (TMSC) continues to contribute to healthcare and social welfare by providing innovative, advanced products and solutions for customers worldwide. We create medical technology, taking the slogan "Made for Life" as our guiding philosophy and focusing on the following principles. 1. We offer technology that provides fast, accurate diagnosis, improved treatment, and enhanced patient care. 2. We produce reliable systems that offer maximum uptime, increased utility, and improved workflow. 3. We are committed to developing long-term, customer-focused lifetime solutions. Management Slogan "Made for Life", the slogan adopted by Toshiba Medical Systems Corporation, symbolizes the company's basic commitments. Made for Patients Made for You Made for Partnership contents 2 Basic Commitment and Management Slogan/Contents Editing policy 3 Message from the President This report uses an ISO 26000 item format. The contents of the environmental report have been enhanced. 4 Businesses and Responsibilities of Toshiba Medical Systems Corporation 5 Basic Policies Concerning CSR Activities/Results and Objectives of CSR Management 6 Topics in FY2010: From the Front Line of Clinical Practice Social Report 8 Organizational Governance/Fair Operating Practices 9 Human Rights/Labor Practices 10 Community Involvement and Development 11 Response to Customer (Consumer Issues) Environmental Report 13 Environmental Policy/Environmental Vision 2050 14 Highlight (1) Topics: Eco Products Awards 2010/ECR Exhibition 15 Highlight (2) Results and Objectives of the Fourth Action Environmental Plan Period of report This report mainly focuses on the results of activities in FY2010 (from April 1, 2010 to March 31, 2011), but also includes past activities that are still in progress, as well as more recent activities. Extent of report Toshiba Medical Systems Corporation and TMSC group companies. Parts of the report also present activities of the entire Toshiba Group or Toshiba Group companies. Publication Date August 2011 (Previous publication: December 2010; next publication schedule: end of June 2012) Reference guidelines * GRI: Global Reporting Initiative * Sustainability Reporting Guidelines (G3) * Environmental Reporting Guidelines (FY2007 Version), Ministry of the Environment of Japan * ISO 26000:2010, Guidance on Social Responsibility 16 Management 17 Greening of Products 19 Greening of Process 21 Communication 22 Data TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 02 Message from the President "Made for Life" is the management slogan of Toshiba Medical Systems Group. It symbolizes our basic commitment to face life directly ("Made for Patients, Made for You, Made for Partnership") and our mission to contribute to society through healthcare by developing advanced medical technologies. On March 11, 2011, many precious lives were lost in the Great East Japan Earthquake. I would like to express my deepest condolences to the families of those who lost their lives as a result of the earthquake and my sympathies to those who continue to suffer from its after-effects. Toshiba Medical Systems Group has been making collective efforts to support early recovery from the earthquake and its aftermath. Promoting CSR management on a global scale As we expand our operations across the globe, the behavior of each of us is now being questioned. It is the responsibility of all companies to observe the laws, ordinances, and social standards of each country and region, and to contribute to local communities. In order to properly implement CSR management, it is important to practice honest and transparent management, understanding our responsibilities and giving the utmost priority to life, safety, and compliance with laws, regulations, and social norms. In FY2010, we applied this to all aspects of our business. We will continue our efforts to increase the trust of society by ensuring that our activities are performed in a highly ethical and responsible manner in accordance with the "Toshiba Medical Systems Group Standards of Conduct". Enhancing environmental management in order to contribute to the solution of global environmental issues With the continuing challenge of global warming and the threat to biodiversity and ecosystems, one mission for all companies is to contribute to conservation of the Earth's precious environment. We have been implementing "Greening of Products" and "Greening of Process" as our ecological management policies. "Greening of Products" involves efforts to develop products through an environmentally conscious design process, and provide customers with products and services that achieve the industry's highest level of environmental performance. "Greening of Process" involves efforts to minimize the environmental impact of all our business processes, by improving the efficiency of the manufacturing process and implementing a modal shift in the product distribution process. From FY2011 onward, we will accelerate these efforts through the newly established "Environment Management Department". As a member of Toshiba Group employing its "eco style" global brand of environmental management, we will ensure that all our employees continue to enhance environmental activities to achieve harmonious coexistence with the Earth. Acting and advancing together with our stakeholders In order to implement CSR management based on the management slogan "Made for Life", we place importance on communication with all stakeholders, including our customers. All employees of Toshiba Medical Systems Group practice CSR in their daily activities, aiming to contribute to a better society and to fulfill the expectations of our stakeholders. President and Chief Executive Officer Satoshi Tsunakawa TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 03 Businesses and Responsibilities of Toshiba Medical Systems Corporation As a global company, we provide leading-edge medical systems and an optimal healthcare environment for people around the world. Our goal is to save lives worldwide using the most advanced medical systems. To contribute to healthcare, we will strive to develop and introduce high-quality, reliable medical equipment and systems as quickly as possible, and provide extensive maintenance ser vices. X-ray TV systems MRI systems X-ray mammography systems Hospital Information Systems (HIS) CT systems X-ray angiography systems Picture Archiving and Communication Systems (PACS) Remote maintenance services Diagnostic ultrasound systems Diagnostic nuclear medicine systems Radiotherapy systems Automated biochemical analyzers Toshiba Medical Systems Group members are actively working to contribute to healthcare sites around the world. 135 Over countries Sales/Service network Major overseas bases Affiliated company of overseas subsidiary 13 locations Major overseas bases TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 04 Basic Policies Concerning CSR Activities/Results and Objectives of CSR Management Basic Policies Concerning the CSR Activities of Toshiba Medical Systems Corporation 1. We aim to earn the trust of society and continue growing, making a positive contribution as a member of society with a respect for life. 2. We practice honest and transparent management, giving the utmost priority to life, safety, and compliance with laws and ordinances, and aim to be an Earth-conscious enterprise. 3. We aim to be a trusted corporation and strive to communicate with all our stakeholders, including customers, employees, shareholders, and the local community. Objectives and main results for FY2010. Objectives and plans for FY2011 Environment Response to Customer (Consumer Issues) Community Involvement and Development Labor Practices Human Rights Fair Operating Practices Organizational Governance Item Objectives for FY2010 Main results for FY2010 Objectives and plans for FY2011 Continued promotion of CSR activities, mainly in CSR Promotion Month (December) • Distribution of messages from the president • Promotion of CSR activities in "CSR Promotion Month" (December) • Promotion of the implementation of high-priority CSR themes Implementation of various compliance promotion policies (Ensuring compliance with the guidelines at Toshiba Medical Systems Group worldwide, etc.) • Meetings on compliance topics at each workplace • Enhancement of a compliance management system through self-audits, education, etc. Risk compliance Cultivation of risk compliance awareness (educational programs tailored to employees in different positions provided at Toshiba Medical Systems Group worldwide) • Educational programs in "Toshiba Medical Systems Group Standards of Conduct" for employees in different positions • Compliance education in engineering ethics, sales compliance, information security, etc. Respect for human rights and prohibition of discrimination Cultivation of respect for human rights • Human rights education for new recruits and for employees at various occasions Promotion of work-style innovation • Implementation of work-style innovation policies based on the ideas collected at each workplace • Work-life balance training for managers Support for balancing work and family life Second "Kurumin mark" approved by the Ministry of Health, Labor and Welfare in recognition of the company's support for employees raising children Respect for diversity Supporting the activities of disabled people Continued achievement of the legal employment rate for disabled people Maintaining the level of the legal employment rate for disabled people Occupational health and safety Promotion of a safe work environment Renewal of OHSAS 18001 (Occupational Health and Safety Management System) certification Promotion of a safe and comfortable work environment Community service activities Promotion of community service activities • Continued implementation of community service activities such as the Pink Ribbon Campaign, and annual hospital exhibition of paintings by our employees. • Relief aid to disaster-affected areas • Promotion of community service activities in various regions of the world • Continued appropriate relief support in disaster-affected areas Improved product quality and safety Promotion of assurance of product quality and safety • Renewal of ISO 9001 and ISO 13485 certification (for quality management systems) • Education on the Electrical Appliance and Material Safety Law Further efforts to ensure product quality and safety Disclosure of product accident information on the website of the Pharmaceuticals and Medical Devices Agency, etc. Appropriate disclosure of product accident information Evaluation of customer satisfaction through periodic questionnaires • Customer questionnaires continued • Promotion of efforts to raise the collection rate of customer questionnaires Evaluation of customer satisfaction through periodic questionnaires Customer support improvement • Improving the quality of telephone response at call centers for TMSC clients • Strengthening and expanding customer support functions • Promoting recovery efforts in disaster-affected areas • Improvement of customer support • Continued promotion of recovery efforts in disaster-affected areas Promotion of universal design Product development incorporating the idea of universal design Adoption of designs in new products that ensure patient comfort, promotion of development of products that incorporate universal design Continued promotion of development of products that incorporate universal design Enhancement of environmental management Enhancement of environmental management system and internal control • Audit by an external certification body • Establishment of Environment Management Department • Internal audit Further enhancement of environmental management system and internal control Provision of environmentally conscious products Continued provision of environmentally conscious products • Our diagnostic ultrasound system received an Eco-Products Award (Chairperson's Award, Eco-Products Awards Steering Committee). • Provision of environmentally conscious new products Continued provision of environmentally conscious products Environmentally conscious business processes Prevention of global warming and effective use of resources • Reduction of CO2 emissions by implementing a modal shift and introducing LED lighting • Intensive control of wastewater quality • Promotion of waste reduction, including reduction of packaging materials Prevention of global warming and effective use of resources Promotion of environmental communication Promotion of environmental communication with local communities • Visiting local facilities for waste treatment, recycling, etc. • Increasing awareness of employees at seminars, etc. Continued promotion of communication with local communities CSR management Support for diverse work styles Dealing with product Disclosure of product accident accidents and problems information Enhancing customer satisfaction (CS) Promotion of the implementation of high-priority CSR themes • Implementation of various compliance promotion policies at Toshiba Medical Systems Group worldwide • Continued provision of risk compliance education (educational programs for different positions, e-learning training, etc.) • Continued promotion of human rights enlightenment activities • Implementation of various work-style innovation policies • Creation of organizational climate in which diversity is respected TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 05 Topics: From the Front Line of Clinical Practice "In order to maintain as high a patient QOL* as possible, we want to provide tailored treatment for each patient in an optimal healthcare environment." Gate Tower Institute for Image Guided Therapy, a clinic in Japan specialized in arterial embolization, is actively providing endovascular treatment for cancer and other diseases that are difficult to treat. Dr. Shinichi Hori, the director of the Institute and an internationally renowned specialist in endovascular treatment, describes his concept of an ideal medical treatment. "We want to provide optimal treatment to maintain the highest possible patient QOL." Located close to Kansai International Airport, Gate Tower Institute for Image Guided Therapy is visited by patients both from Japan and overseas who require endovascular treatment. Annually, over 400 cases of hepatocellular carcinoma are treated at the clinic, one of the highest rates of any institution in Japan. "If you wish to cure cancer completely, systemic chemotherapy is more promising. However, cancer cells differ in their characteristics and growth rates depending on the site of onset, patient age, and health condition. As a result, there are cases where localized treatment is expected to be more efficient considering the patient's current condition. For example, surgery, anticancer drug treatments, and radiation therapy take a toll on the patient's body with significant adverse effects, exhausting the patient and weakening the patient's immune system. On the other hand, endovascular treatment, which does not require an open surgical procedure, can be completed in about two hours. In addition, it requires minimal amounts of anesthetic and anticancer drugs, as the anticancer drugs are injected via a microcatheter to the area closest to the tumor. The patient can receive treatment with minimum stress and pain, and leave the clinic in two to three days. In this sense, endovascular treatment can maintain the highest possible patient QOL, with far less stress to the patient." Dr. Hori is trying to provide optimal tailored treatment for each patient. He spends 20 to 30 minutes for diagnosis of each patient to understand not only the symptoms but also how the patient wishes to live. This approach is necessary for deciding on an optimal treatment that satisfies both the physician and the patient. * QOL: Quality of Life Dr. Shinichi Hori Director Gate Tower Institute for Image Guided Therapy The waiting room, resembling a large living room, provides a comfortable space and calm atmosphere. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 06 "Advances in medical equipment and treatment techniques have led to a dramatic evolution of endovascular treatment." Arterial embolization for cancer treatment being performed at this clinic is one of the most difficult endovascular treatments, requiring highly accurate diagnosis and techniques. It was the development of microcatheters, angiography systems, CT scanners, and embolization materials that enabled this challenging treatment. "Although the idea of endovascular treatment for cancer has existed for more than 20 years, the introduction of microcatheters has dramatically improved the necessary techniques. Microcatheters can now be guided into almost any vessel in the body, and advanced angiography systems and CT scanners can provide a highly accurate map to help the physician reach the malignant lesion. In addition, SAP-MS, an embolization material made of highly absorbent resin, effectively embolizes new blood vessels at the lesion site, enhancing the suppression effect on cancer growth." "In order to save more patients, I want to create a comprehensive care center for cancer." When this clinic was established, it provided endovascular treatment for patients that have come to be referred to as "cancer refugees". These were people diagnosed as incurable using standard cancer treatments including surgery, radiation therapy, and anticancer drug treatment. In recent years, we have been providing endovascular treatment for cancer patients at various clinical stages. "As we have treated more cases, we have realized that endovascular treatment is also effective for cancer patients at early clinical stages. If the tumor can be successfully reduced with endovascular treatment, radiation therapy becomes available for patients for whom it was previously judged impossible. Patients who had travelled a long way to receive our treatment are now visiting their local hospitals to receive radiation therapy again. More effective cancer treatment is now possible by combining endovascular treatment with radiation therapy and anticancer drug treatment." Dr. Hori emphasizes the importance of collaboration with industries and universities, for deep understanding of the clinical value of endovascular treatment, and for dissemination of this value to medical institutions around the world. Gate Tower Institute for Image Guided Therapy is actively promoting cooperation with a local general hospital, joint clinical research with university hospitals, and collaboration with pharmaceutical manufacturers in the development of associated drugs. It is also accepting physicians and medical personnel from overseas for training and/or visits. "In order to further improve patient QOL and provide more tailored cancer treatment for each patient, I want to create a comprehensive care center for cancer," Dr. Hori says. With its advanced medical systems, Toshiba will continue to support Dr. Hori in his vision. TMSC's X-ray angiography system combined with a self-propelled X-ray CT scanner installed at the Gate Tower Institute for Image Guided Therapy X-ray angiography system "「InfinixCeleve -i" TM Realtime fluoroscopy and radiography of a microcatheter inserted into a vessel is possible. In addition, "PureBrainTM" image processing technology provides smooth and sharp R/F images without increasing the exposure dose, ensuring safe and effective endovascular treatment. Self-propelled X-ray CT scanner This self-propelled X-ray CT scanner acquires diagnostic CT images without moving the patient on the table. More accurate identification of the tumor location and confirmation of the treatment results are possible. Dr. Hori explaining treatment methods to medical personnel visiting from overseas. Clinical data: cancer in the right breast before and after endovascular treatment Gate Tower Institute for Image Guided Therapy Before treatment After treatment Rinku Gate Tower Building 11F, 1 Rinku Orai Kita, Izumisano-shi, Osaka 598-0048 TEL: +81-72-463-0855 (English: +81-3-3811-8801) http://www.igtc.jp Topics: From the Front Line of Clinical Practice TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 07 Social report "We aim to be a better company that contributes to society through healthcare, fulfilling the expectations of our various stakeholders." Organizational Governance/Fair Operating Practices We will promote our business activities worldwide with the aim of contributing to solving social issues. Promotion of CSR management CSR Management Structure of Toshiba Medical Systems Corporation As a member of Toshiba Group, we chose "Promotion of CSR management" as one of our key management policies. As part of CSR management, we urge our employees in all parts of the world to comply with the Toshiba Medical Systems Group Standards of Conduct and to act with unshakable integrity in all business activities. Toshiba Group's CSR Governance Committee TMSC Chief CSR Officer Toshiba Group's Integrity 1. Meet our responsibilities to society Environment Legal Compliance Customer Satisfaction Proactively contribute through business activities to solutions to social issues such as climate change. Quality Social Contribution Health & Safety 2. Secure sound management and finances Human Rights/ Employee Satisfaction Ensure sound business management by according the highest priority to human life and safety and to compliance so that Toshiba continues to be trusted by society. Group companies in Japan Overseas group companies In order to conduct our business activities in a fair manner, we strive to ensure compliance with laws and ordinances. Enhancing activities to ensure compliance with laws and ordinances We have established a risk management and compliance management structure to ensure compliance with laws and regulations, social and ethical norms, and internal rules throughout our worldwide operations, and to promote fair business. We also urge our employees to act in accordance with the "Toshiba Medical Systems Group Standards of Conduct", which is the foundation of our compliance, and are promoting various compliance management policies to ensure compliance throughout our operations. ー Promotion of compliance education To ensure compliance with the "Toshiba Medical Systems Group Standards of Conduct", we provide education programs for new recruits and managers based on the needs of different organizational levels. On a continuing basis, we also provide all employees with e-learning and compliance education concerning specific laws. ー Meetings on compliance topics at each workplace Each workplace regularly holds meetings on compliance topics to raise the awareness of every employee with regard to compliance matters. These meetings aim to prevent deviation from compliance by strengthening communication between managers and other members at each workplace. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 08 Human Rights/Labor Practices Social report Through educational and enlightenment activities, we strive to create organizations where diverse people can actively work together. Respect for human rights Respect for diversity ー Employment of non-Japanese people Toshiba Medical Systems Group's basic policies include respecting basic human rights, eliminating discriminatory treatment, and observing laws and regulations. In the "Toshiba Medical Systems Group Standards of Conduct", it is specified that diversity of individual values, personality, and privacy should be respected, and that discriminatory behavior concerning race, religion, sex, nationality, mental or physical disability, age, and sexual orientation, as well as behavior detrimental to human rights, such as violence, sexual harassment and power harassment, should be eliminated. Through educational activities, we are promoting awareness of and respect for human rights. We are actively promoting employment of non-Japanese people, not only at overseas subsidiaries but also at group companies in Japan. We also provide education programs for them in order to create an organizational climate in which people from diverse backgrounds can actively work together. ー Encouraging employment of disabled people Our employment of staff with disabilities reached 2.1%, exceeding the legally required employment rate in Japan for people with disabilities (1.8%). Toshiba Medical Systems Group will maintain its commitment to employing people with disabilities and to further expanding the areas in which they can be more active. We strive to create a safe, comfortable work environment for all employees. Promoting occupational health and safety Promotion of work-style innovation Toshiba Medical Systems Group considers safety to be a primary responsibility of management. Giving the utmost priority to life, safety, and compliance with laws and ordinances in all business activities, Toshiba Medical Systems Group promotes a safe, comfortable work environment and places the highest value on the mental and physical health of employees. Toshiba Group has been promoting work-style innovation to enable employees to work conscientiously and efficiently while making the most of their life outside work. This encourages them to rejuvenate and improve themselves so that they can add higher value to their work. In cooperation with the employees' labor union, Toshiba Medical Systems Corporation collected ideas for achieving work-style innovation at each workplace, and established work-style innovation policies based on these ideas. With the purpose of raising awareness of the diverse work styles of employees, we also invited a lecturer to provide work-life balance education for managers. Example of work-style innovation policies Research and development department Sales department ー Occupational health and safety management system In February 2008, Toshiba Medical Systems Corporation headquarters obtained OHSAS 180 01 certification, the international standard for occupational health and safety management systems. Based on this certification, we are promoting a variety of occupational health and safety policies. Our employees identify over 8,000 risk factors in their annual risk assessment activities, which helps to raise employee awareness. We w i l l e n h a n c e o u r m e t h o d s fo r continuous risk analysis, management and improvement, and strive to create a safer work environment. Reviewing operation of experimental installation, enhancing development tools, simplifying paperwork Simplifying paperwork, strengthening management staff at each branch office, reviewing education of sales representatives Customer service Promotion of remote maintenance, providing support from headquarters to branch offices, encouraging home-to-destination business trips department Supporting employees' work and childcare For the second time (the first was in 2007) we obtained the Next Generation Support Certification Label, which is based on the Next Generation Education and Support Promotion Act. This certification is given to companies which have established and implemented an action plan* to create a working environment encouraging child care, and which have achieved certain standards. These companies are certified by a chief of each prefectural labor bureau as companies supporting child care. ー Promoting occupational health We have been continuously implementing measures to promote occupational health so that all employees can fully exert their abilities. In FY2010, we provided appropriate work management support for employees at a high risk of developing adult diseases, and enhanced our mental health promotion policies by providing a lecture on mental health for employees. *Action plan: As a result of implementation of various supporting measures, we set the following non-binding targets: Minimum number/percentage of relevant employees using the child-care leave system in the target period: male: 1, female: 90%. Outline of working systems and number of participants <as of March 31, 2011> * Toshiba Medical Systems Corporation only 2010 2007 2008 2009 Child-care leave system Applicable period: until the child is 3 years old, regardless of the working status of the spouse Male 0 0 0 1 Female 10 15 20 19 Family-care leave system Applicable period: up to 365 days per family member in need of nursing care Male 1 1 0 0 Female 0 0 0 0 Applicable period: until the child is in the 3rd grade (for child care): up to three years per family member in need of nursing care (for family care) Male 0 0 0 0 Female 9 11 12 10 Reduced working hours system TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 09 Community Involvement and Development Social report In order to establish a society in which local people lead enriched lives, we are involved in a variety of activities to serve local communities. Participation in the Pink Ribbon Campaign Providing diagnostic ultrasound systems to support recovery from the Great East Japan Earthquake We are supporting the Pink Ribbon Campaign, which promotes breast cancer screening for the early detection and treatment of breast cancer. In FY2010, we participated in Pink Ribbon Campaign events held in various parts of Japan, and exhibited systems for breast cancer screening, including X-ray mammography systems. We also received a Toshiba Group Social Contribution award for these activities in FY2010. The Toshiba Group provided a donation equivalent to 1 billion yen to support recovery from the aftermath of the Great East Japan Earthquake. As part of this donation, Toshiba Medical Systems Corporation provided 10 "ViamoTM" mobile diagnostic ultrasound systems through the Japan Red Cross. Although compact, the Viamo system can provide high-resolution diagnostic images. It has been used for diagnosis of diseases such as "economy-class syndrome" (deep venous thrombosis), which is likely to affect people living at evacuation centers for prolonged periods. Providing a healing space with an annual painting exhibition for hospital patients At a hospital in Chiba, Japan, the corridor leading to the hospice provides a nonstressful space for patients and their families, with paintings and other artworks exhibited every year since 1993. In July 2010, 33 works by current and retired employees and their family members were displayed. Local cleaning activities Community service activities through sports Every June, TMSC headquarters has been conducting group cleaning of areas around the headquarters during employee lunch breaks. In 2010, 450 employees took part in the 17th group cleaning. Each of our branch offices has also been conducting local cleaning activities regularly. TMSC women's table tennis club, which belongs to the national corporate table tennis league, has been coaching the table tennis clubs of local junior and senior high schools. About 300 students from local junior high schools participated in a table tennis seminar held in February 2011. This seminar will be regularly held in future as part of efforts to promote communication with local communities through sports. Community service activities in various parts of the world Toshiba Canada, Ltd. As part of fund-raising activities for people affected by the Great East Japan Earthquake, employees sold handmade pastries and collected donations. Toshiba America Medical Systems, Inc. Employees donated Christmas presents to underprivileged children and performed fundraising activities for people affected by the Great East Japan Earthquake. Toshiba Medical Research Institute USA, Inc. Employees joined activities to support low-income families building their houses. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 10 Response to Customer (Consumer) Social report We aim to provide the safest, highest-quality products in the world through our quality management system. Quality assurance and quality management system We have specified the procedures for ensuring product safety and quality in our Quality Manual (QM). Based on this manual, all of our employees strive to improve product quality so that we can provide our products to customers with confidence, acknowledging that they are the safest and highest-quality products in the world. <Basic policy> Based on the respect for life that forms the basis of our management principles, TMSC complies with current safety-related laws and regulations, maintaining a client-centered attitude, and aims to contribute to society by providing high-quality, safe products and services with advanced functions that satisfy our customers. <Standards of conduct> 1. We engage in quality assurance from the customers' point of view. 2. We observe relevant laws and contracts and respect the rights of customers and third parties. 3. We ensure that all of our departments and all of our employees act to improve the quality of products and product-related business processes. 4. We establish, continuously improve, and maintain quality management systems that comply with global business standards. 5. We aim for essential improvement by investigating the root causes of process failures. Swift response to product safety incidents Enhancing response to customers at the customer support center Enhancing response to customers at the customer support center In order to handle inquiries from customers who introduced electronic chart systems and/or computerized systems for medical paperwork, we established the "Tosmec customer support center", where well-trained staff provide up-to-date information about clinical practice, drug prices, new drugs, etc. In order to respond quickly to customer inquiries, which are increasing every year, we optimize staff assignment at this center through a statistical approach, striving to maintain the quality of response and to increase customer satisfaction. The average number of inquiries per month was 6,600 in FY2010, exceeding the number in fiscal 2009 by 900. We have established a quality management system where employees, such as sales and service representatives, who become aware of information concerning a TMSC product accident or problem, must immediately alert the quality management department and executives. Based on this information reported by employees, the CPL Committee* decides how to act upon the matter. In the event of an accident attributable to a product that is likely to recur, we immediately inform customers of the danger, promptly report to the competent authorities, and implement countermeasures as soon as possible. Information concerning a TMSC product accident and countermeasures will also be disclosed on the website of the Pharmaceuticals and Medical Devices Agency (PMDA). 6,600 Average number of inquiries * CPL Committee: CPL is an abbreviation combining CL (contractual liability) and PL (product liability). The CPL Committee, chaired by the Chief Quality Executive, promptly determines measures to deal with product accidents and quality issues. /month (From April 2010 to March 2011) Quality management structure Toshiba Corporation President Corporate CPL Review Committee Secretariat Head of the Quality Promotion Office Toshiba Medical Systems Corporation Chairman Head of the Quality Division Emergency reports on serious CPL accidents Examination of responses to serious CPL accidents TMSC president TMSC CPL Committee Chairman Chief Quality Executive • Policies on responses to accidents Reports Emergency reports on CPL accidents Chief Quality Executive • Formulation of countermeasures • Reports to competent authorities Reports on CPL accidents Incident Response Liaison Representatives of legal compliance and safety control departments Information on CPL accidents worldwide TMSC branch offices in Japan Overseas subsidiaries/distributors Sales personnel Service personnel Competent authorities Reports on CPL accidents Heads of branch offices/ subsidiaries/distributors Reports TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 11 Response to Customer (Consumer) Social report We aim to provide prompt and appropriate services so that at all times, our customers can use our products with confidence, and customer satisfaction is ensured. Strengthening and expanding customer support functions The Customer Support & Training Center, which began operations in January 2009, is equipped with well-designed training facilities, such as a lecture room located next to a hands-on training room to provide trainees with more efficient training, and a virtual hospital LAN system that allows trainees to experience an intra-hospital network system. At this center, trainees can learn how to make the best use of TMSC products. In addition, we have reinforced the technical call center by introducing "InnerVisionTM Plus", a remote maintenance system capable of monitoring customers' systems 24 hours a day, 365 days a year. We offer stronger customer support based on the service business concept RPPTM, the aim of which is to take prompt and appropriate action and to increase system uptime. * RPP TM Customer support & training center : Reactive maintenance: quick repair even if the system malfunctions; Proactive maintenance: detection of a problem before the customer becomes aware of it; Predictive maintenance: prevention before the system malfunctions ー Enhancing maintenance services through development of a remote maintenance system The remote maintenance system "Inner VisionTM Plus" can be used for early detection of system abnormalities, prevention of possible failures, and quick scheduling of repair if any problem occurs. It also ensures optimal system performance by collecting information regarding the use of each product. Early detection of abnormality Medical institution Technical call center Hands-on training room Automatic transmission of alerts Detection and correction of possible failures Support center Technical call center MRI system, X-ray system, CT system, etc. Simultaneous scheduling of customer engineer dispatch and service parts delivery Quick scheduling of repair of possible failures Remote maintenance Correction through periodic checks InnerVisionTM Plus Rapid failure analysis - Analysis by highly skilled engineers -High-speed data acquisition - Quick and accurate transmission of necessary information Emergency backup system in the event of disasters As a leading manufacturer of diagnostic imaging systems in Japan, we established "Standards of Conduct in the Event of Large-Scale Disasters" in preparation for large-scale disasters such as earthquakes and typhoons. These standards are aimed at quickly establishing an emergency backup system by customer engineers all around Japan to provide immediate support to customers. Immediately after the Great East Japan Earthquake, we set up a "Disaster Recovery Support Office" at the headquarters and Tohoku regional office. We contacted each of our customers to confirm the extent of damage to equipment, conducted an emergency service tour, and made every effort to restore equipment so that it could be used as soon as possible. Such efforts were greatly appreciated by customers who had been affected by the disaster. Standards of Conduct in the Event of Large-Scale Disasters Large-scale disasters Emergency information Earthquakes, floods, etc. Service center Branch offices Local disaster recovery support office Customer Confirmation of equipment damage Service tour to ensure safety Recovery efforts • Customers' primary contact • Collecting information from customers regarding equipment damage • Formulation of a recovery plan • Performing recovery efforts Emergency information Branch offices/Headquarters Disaster Recovery Support Office Report of equipment damage - Decision of recovery support policies - Establishment of a recovery support system by customer engineers all around Japan Request for assistance TAC Instructions on recovery efforts Assistance (Technical Assistance Center) - Technical support - Scheduling delivery of service parts - Scheduling delivery of loaned equipment TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 12 Environmental Report "As one of the world's foremost eco-companies, we strive to create environmentally conscious products for a sustainable Earth." Toshiba Medical Systems Group Environmental Policy Recognizing that the Earth is an irreplaceable asset, the Toshiba Medical Systems group strives to develop and provide "environmentally conscious medical systems" in order to contribute to community and healthcare services. This is the responsibility and commitment of the Toshiba Medical Systems group, which is expanding its business worldwide. Based on this philosophy, and to the extent technically and economically feasible, we promote environmental activities in accordance with the Toshiba Commitment, Toshiba Group's Basic Policy for the Environment, and the Code of Conduct of the Toshiba Medical Systems group. 1. The Toshiba Medical Systems group considers environmental stewardship to be a primary responsibility of management. The group specifies and periodically reviews its objectives and targets through assessment of the environmental aspects of its business activities, products, and services. All staff members work towards this goal in order to continuously improve the environmental management system and its performance and to prevent pollution. 2. The Toshiba Medical Systems group complies with all laws and regulations concerning the environment, agreements on pollution prevention, and its own stricter standards, taking effects on the environment and on biodiversity into consideration. 3. The Toshiba Medical Systems group selectively specifies the following objectives in order to reduce the environmental impact of its products and business processes. (1) Developing and providing environmentally conscious products and services that contribute to reducing environmental impact throughout their life cycles, through the promotion of green procurement and the control of chemical substances. (2) Reducing the environmental impact of all business processes, including design and development, manufacturing, sales and distribution, servicing, and disposal, with a focus on the prevention of global warming, efficient utilization of resources, and control of chemical substances. 4. Maximizing disclosure and enhancing communication in order to facilitate mutual understanding with communities and customers. President and Chief Executive Officer Toshiba Medical Systems Corporation Satoshi Tsunakawa Environmental Vision 2050 People leading enriched lives in harmony with the Earth – this is the ideal situation envisaged in the Toshiba Group Environmental Vision 2050. The plan considers prevention of global warming, effective use of resources, and management of chemical substances throughout the life cycle of a product ("making, using, returning, reusing"), and is aimed at achieving harmonious coexistence with the Earth. "eco style" In order to evolve into one of the world's foremost eco-companies, Toshiba Group has been accelerating its environmental management under the global brand "eco style." TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 13 Highlighting environmental activities Environmental Report Our environmentally-conscious products received a high evaluation, strengthening our position as one of the world's foremost eco-companies. Received an Eco-Products Award (Chairperson's Award, Eco-Products Awards Steering Committee) at the seventh Eco-Products Awards exhibition Our diagnostic ultrasound system received an Eco-Products Award at the seventh Eco-Products Awards exhibition At the seventh Eco-Products Awards exhibition in FY2010, our diagnostic ultrasound system "Aplio TM MX" received a Chairperson's Award from the Eco-Products Awards Steering Committee. This ultrasound system, while designed to reduce environmental impact, boasts excellent diagnostic performance with high-quality images, and these unique characteristics were highly appreciated by the Committee. This was the second time one of our products received this award, following the X-ray CT system "AquilionTM 64" in fiscal 2007. The AplioTM MX system also won an Outstanding Prize in the Toshiba Group Environmental Awards in FY2010. 2010 Efforts to reduce CO2 emissions in AplioTM MX Lifecycle assessment (at the usage stage) Power consumption Measures to reduce ΣCO2 emissions (at the usage stage) Average power consumption during examination Improved basic performance Improved basic performance Conventional model Conventional model New model New model Product penetration rate Improved examination efficiency Product penetration rate Introduction of advanced technologies to reduce required voltages and increase the level of integration Software-based functions, reduction of dedicated PWBs (hardware) by use of software, etc. Power consumption Improving efficiencies of transducers and the system, increasing element sensitivities, reducing a transmission loss, etc. -35% Weight Enhanced functions to support examination and treatment - Real-time, high-resolution 4D function - Multi-viewing function, etc. Enhanced operability * Calculated on the assumption that the system will be used for seven years Product features (as compared to our model released in fiscal 2001) Time required for examination of one patient -30% System volume -50% Installation area -30% • A variety of advanced clinical applications available in a compact system • Introduction of latest technologies to achieve an energy-saving design • Transducers can be shared with conventional systems, raising cost-effectiveness Ecological Focus for Exhibition at ECR2011 At the "European Congress of Radiology (ECR) 2011" held in March 2011, Toshiba Medical Systems Europe took the lead over other manufacturers in presenting a new focus when exhibiting products, highlighting their excellent environmental advantages. Manufacturers usually promote the clinical performance of their products at exhibitions. Toshiba Medical Systems Group was the first to promote both environmental and clinical performance of our products on exhibition panels, emphasizing their environmentally conscious features. Our unique exhibits drew strong interest from customers in Europe, where environmental performance is a prominent issue, and we received many questions from visitors about our environmentally friendly products. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 14 Highlighting environmental activities Environmental Report We are working hard to reduce our environmental impact to achieve the targets for Toshiba Group's "Environmental Vision 2050". In FY2011, fully recognizing the importance of achieving its targets, and the seriousness of its responsibility to promote environmental activities, Toshiba Group changed the name of its environmental plan from "Voluntary Environmental Plan" to "Environmental Action Plan". We have set our own goals based on the Toshiba Group's "Fourth Environmental Action Plan". Targets and results of FY2010 for the TMSC Fourth Environmental Action Plan Improvement of product eco-efficiency Item Provision of environmentally conscious products Provision of environmentally conscious products Total abolition of the use of 15 specified substances in products Reduction of energy-originated CO2 emissions per production unit Innovation in business processes Prevention of global warming Reduction of logistics-originated CO2 emissions per production unit (for logistics in Japan) Reduction of the total amount of waste generated per production unit Effective use of resources Zero emission of waste Improving the recycling rate of used products Management of chemical substances Reduction of the total amount of chemicals released into the atmosphere and waters Target for FY2010 Achieved value/Evaluation Over 60% 63% of sales for each modality Authorization of standard parts Expansion of application 100% (for standard parts) Target for FY2011 Target for FY2012 Over 74% Over 80% 100% (for standard parts) Total abolition of the use of Achievement rate in target model: 100% 15 specified substances to parts that are not commercially available Achievement rate in target model*: 82% Reduction of 49% Reduction of Reduction of 50% Reduction of 63.5% (compared to FY1990) (compared to FY1990) (compared to FY1990) (compared to FY1990) Continued monitoring of CO2 emissions at non-production bases Continued monitoring of CO2 emissions at non-production bases Continued monitoring of CO2 emissions at non-production bases Continued monitoring of CO2 emissions at non-production bases Increased use 19% increase of trains and ships in use of trains and ships Expansion of modal shift 12% reduction of CO2 emissions per production unit 15%reduction of CO2 emissions per production unit 49% from all developed products (compared to FY2004) (compared to FY2004) Introduction of 131 low-emission avehicles (such as hybrid vehicles) in total Introduction of more than 171 vehicles in total Reduction of 27% Reduction of (compared to FY2000) (compared to FY2000) Production base: Maintaining level below 0.2% Non-production base: Continued monitoring of final disposal Introduction of more than 191 vehicles in total 27% Production base: Maintaining level below 0.2% Non-production base: Continued monitoring of final disposal 93% Over 89% Monitoring of the total amount of chemicals released 3t Continued promotion of operational management focused on management of chemical substance handling. Reduction of 28% (compared to FY2000) Introduction of more than 211 vehicles in total Reduction of more than29% (compared to FY2000) Production base: Maintaining level below 0.2% Non-production base: Continued monitoring of final disposal Production base: Maintaining level below 0.2% Non-production base: Continued monitoring of final disposal Over 93.5% Over 94% Monitoring of the total amount of chemicals released Monitoring of the total amount of chemicals released Continued promotion of operational management focused on management of chemical substance handling. Continued promotion of operational management focused on management of chemical substance handling. * Achievement rate in target model: The achievement rate in parts used for a target model, which is designated every year Evaluation standard : Achieved : Achievement rate above 80% : Achievement rate below 80% TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 15 Environmental management Environmental Report With the aim of achieving further business growth while promoting environmental protection, we are strengthening our system for promoting environmental activities. Reinforcement of the system for promoting environmental activities With the aim of becoming a company that achieves business growth while reducing environmental impact, we established the "Environmental Management Department" on April 1, 2011. The role of this department is to establish medium-term and long-term environmental management policies, and to assist in product planning, development, production, sales, and service activities from the viewpoint of environmental management. The department will focus particularly on evaluation of environmental performance, training for employees in providing environmental performance, and promotion of environmental marketing. Major Promotion System for Environmental Activities President Internal control We are conducting internal environmental audits at group companies in Japan and overseas, as well as at our facilities, branch offices and departments, according to their ranking in "Environmental Impact Evaluation". In FY2010, we conducted internal environmental audits mainly of departments that have been evaluated as having high environmental impacts, and confirmed that our environmental management system was working properly. In addition, we are active in undergoing environmental audits by external organizations and Toshiba Corporation, which provide excellent opportunities to improve the level of our environmental management. The audit results are also reported to our environmental management officer as feedback, and are utilized to further improve the environmental management system. (environmental management officer) Periodic environmental audits by external and internal organizations Environmental Officer (deputy environmental management officer) External audit Chief Technology Executive (deputy environmental management officer) Head of the Quality, Safety and Regulation Center Audit by external organization based on ISO 14001 (deputy environmental management officer) Environmental Management Department New Promotion of environmental activities related to management Head of the Quality and Environment Assurance Department (environmental control officer) Toshiba Group environmental audit Audit based on Toshiba Group's environmental audit system Quality and Environment Assurance Department Promotion of environmental activities related to business operations Engineering Administration Department Promotion of environmental activities related to development and design Internal audit Self-audit based on Toshiba Medical Systems' environmental audit system. Global Marketing Department Promotion of environmental activities related to sales and marketing Facilities/branch offices in Japan Group companies in Japan Overseas subsidiaries TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 16 Green of Producut Environmental Report Environmental consideration for products We aim to develop products that achieve the industry's highest level of environmental performance. Promotion of development of environmentally conscious products We believe we have an import ant dut y to develop and design high-performance diagnostic systems while employing environmentally conscious design to reduce their environmental impact. Through all processes, from product planning to development and production, we have been implementing measures in accordance with International Electrotechnical Commission regulation IEC 60601-1-9* in order to provide environmentally conscious products. Through enhancement of our efforts toward prevention of global warming, effective use of resources, and control of chemical substances, we will provide products that realize improved environmental efficiency. Efforts to prevent global warming As medical systems are generally used for many years, CO2 emitted at the usage stage accounts for the majority of the CO2 emitted over the entire life cycle of the product. In order to minimize the operating time, we provide medical systems that can shorten examination times while providing highly accurate diagnostic performance and improved examination efficiency, leading to reduced power consumption by our products. Breakdown of CO2 emissions in medical devices * International Electrotechnical Commission regulation IEC60601-1-9: An IEC regulation that specifies requirements for environmentally conscious design (issued in July 2007). The purpose of this regulation is to ensure compliance of medical devices with the environmental regulations in each country, which become stricter every year. Outline of Product Recycling Procurement Breakdown of Production 1% CO2 emissions Distribution 3% in diagnostic ultrasound systems (example) Recycling Hospital Transportation Products Produce Design/Procurement/ Production Use Product cycle Materials Usage Product collection network Discarded products Return, Reuse Resource recovery Green procurement initiatives With cooperation from our business partners, we are carrying out surveys of the chemical substance content of all parts and materials, and asking our business partners to supply parts and materials with low environmental impact. We are also performing our own chemical analyses to ensure the safety of procured parts and materials. In July 2010, we held an annual green procurement orientation meeting for all of our business partners. In this meeting, we explained about our green procurement policies and asked for continuous cooperation in the management of chemical substances. We will continue to manufacture and provide chemically safe products by strengthening cooperation with our business partners. Efforts to manage chemical substances In order to ensure safe and comfortable use of our products by customers, we have been reinforcing activities focused on the total abolition of 15 specified chemical substances. When procuring parts and materials, we collect data on chemicals contained in these parts and materials with cooperation from our business partners. We are working to establish a system in which this information is stored in a database, and the database is used to perform acceptance inspections and manage manufacturing history. We are especially careful not to use parts and materials containing any of 15 specified chemical substances for sections that may come into contact with the human body. For other chemicals that have been newly specified as control substances by laws and regulations of individual countries, we will promote the use of alternative materials. We are also working to introduce a product traceability system that identifies the parts used in a product, and the time they were procured. 26% Disposal less than 0.1% 70% less than 0.1% Promotion of effective use of resources With the aim of achieving a recycling-oriented society, we have been promoting "3R design" by reducing the size and weight of our products, actively employing recycled parts, and increasing the use of renewable materials. We also strive to reduce the packaging materials for transportation of products, and to employ a design that increases the reuse rate of packaging materials. 3R Reduce Reuse Recycle Efforts to reduce patient exposure dose To obtain high image quality in diagnostic X-ray systems and X-ray CT scanners, the X-ray dose must generally be increased to enhance contrast. In these systems, we have achieved low exposure doses while m a i n t a i n i n g h i g h i m a g e q u a l i t y by d eve l o p i n g l e a d i n g - e d g e , high-performance image processing technologies. We also offer "noncontrast MRA" technology for MRI systems, which normally use contrast medium to obtain blood vessel images. This technology eliminates the necessity for contrast medium in MR angiography, reducing the patient exposure dose. Reducing the amount of contrast medium used also contributes to a lower environmental impact. Clinical data obtained using noncontrast MRA TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 17 Green of Producut Environmental Report Environmental consideration for products Through environmentally conscious design of our medical systems, we strive to reduce energy consumption, use of resources, and CO2 emissions. (Results compared with conventional models) MRI systems TM Vantage Titan Resources (helium) Quantity of disposal by landfill 3T -50kg -438ℓ This system employs a high-performance refrigerator to prevent liquid helium from leaking from the magnet assembly, eliminating the necessity for periodic helium supplementation. The amounts of non-reusable FRPs* used in this system have been reduced by 38% on a weight basis, contributing to conservation of resources and reduction of industrial waste. Noncontrast MRA technology reduces the patient exposure dose. *FRP:Fiber Reinforced Plastics (Results compared with Year 2001 models) Diagnostic ultrasound systems TM Aplio MX Power consumption -35% CO2 Resources -1.2t/year -35% The introduction of advanced high-density packaging technologies has contributed to reduced size and weight of the system, achieving a 50% cut in volume and 30% cut in the installation area. This compact feature allows easy transportation of the system within a hospital ward and effective use of space in the examination room. The operation for examination workflow is optimized, shortening examination times and reducing power consumption per examination by 35%. The transducers can be shared with conventional systems, increasing cost-effectiveness. To provide a comfortable examination environment, no PVCs* are used in sections that may come into contact with the patient. *PVC:Polyvinyl chloride (Results compared with Year 2006 models) Diagnostic X-ray systems Infinix Celeve TM i CO2 -8.7t/year The advanced "PureBrainTM" image processing technology has been employed to reduce power consumption as well as the X-ray exposure dose. The exposure dose can be reduced by 1/10 to 1/5 when radiography is replaced by fluoroscopy (recording). The power consumption can be reduced by 1 kWh to 2 kWh per examination. (Results compared with Year 2007 models) X-ray CT systems TM Alexion Power consumption -24% CO2 -7.2t/year The compact system saves space and requires less installation area. It can be installed in the existing examination room with minimum space and minimum installation work, generating less industrial waste during installation. The advanced "AIDR*" reconstruction processing function, which incorporates cutting-edge image processing technologies, has been employed to reduce the exposure dose. The X-ray exposure dose can be reduced by up to 75% with this function. *AIDR:Adaptive Iterative Dose Reduction TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 18 Green of Process Environmental Report Environmental consideration in the manufacturing and business processes TMSC Headquarters are promoting business activities to achieve harmonious coexistence with the natural environment. Natural environment surrounding TMSC Headquarters TMSC Headquarters, which is also the main production base, is surrounded by a wealth of nature. A green belt extends across the area, and the Class-A Houki River flows nearby. To achieve harmony with nature and contribute to a sustainable society, we are promoting environmental activities in our business operations. Reduction of CO2 emissions at TMSC Headquarters As most CO 2 emissions at TMSC Headquarters result from the consumption of electricity, we strive to reduce our usage at TMSC Headquarters through various efforts. In FY2010, we replaced all lighting in our facilities and in the parking areas with LED lighting, reducing annual CO 2 emissions by 11.3 t. We also replaced power-receiving equipment introduced almost 30 years ago with high-efficiency equipment, reducing annual CO2 emissions by 9.2 t, and replaced some air conditioners with the latest inverter-type air conditioners, reducing annual CO2 emissions by 7.4 t. Extensive water quality control and testing For wastewater from the treatment plant at TMSC Headquarters, we have established independent control values that are stricter than those in the laws and regulations, and in agreements with local cities. The water quality is monitored through extensive data management and observation of fish in a test pond, and only cleaned water that has cleared the regulation values is discharged to the Houki River. Hydrogen Ion Concentration Index (pH) 9 7.10 7 7.30 7.30 7.20 7.20 7.20 7.10 7.40 7.20 7.10 7.20 7.10 6.4 6 Introduction of LED lighting Agreement regulation value Independent 7.6 control value 8.6 8 5.8 Annual CO2 emissions -11.3t '10/4 5 6 7 8 9 10 11 12 '11/1 2 3 Biochemical Oxygen Demand (BOD) (mg/l) 12 10 Introduction of high-efficiency power-receiving equipment Annual CO2 emissions -9.2t 10 Agreement regulation value 6.7 Independent control value 8 6 4.1 4 3.0 2 1.0 1.0 1.8 1.2 0 '10/4 5 6 7 8 9 1.0 1.0 1.0 0.8 1.5 1.6 10 11 12 '11/1 2 3 Efforts to reduce the use of municipal water Breakdown of 96.2% LPG 3.1% Heavy oil A 0.7% Electricity energy use in FY2010 As persistent water shortages have been increasingly regarded as an environmental issue, in FY2008 we introduced a gray-water system to promote the reuse of water. By utilizing and repeatedly reusing groundwater before returning it to the ground, we reduced the use of municipal water by 21,000 m3 in FY2010 compared to FY2009. 80000 Production 39.2% Breakdown of Air conditioning 23.4%electricity use in FY2010 Lighting/outlets 22.1% Utilities 15.3% (m3) 60000 40000 20000 0 2008 2009 2010 TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 19 Green of Process Environmental consideration in the manufacturing and business processes Environmental Report We are promoting environmental protection in all business activities throughout the company. Reduction of CO2 emissions by expanding modal shift In 2009, we became the first medical systems manufacturer to obtain "Eco Rail Mark*" certification. In FY2010, we renewed the certification, and actively promoted reduction of CO2 emissions in the distribution process by expanding modal shift and reducing the number of trucks running with no load. Activities to reduce waste In FY2010, we reduced the total discharge amount by 59 t compared to FY20 09, by reducing the amount of packaging materials used, expanding reuse of wooden pallets, and enhancing recycling of waste plastics, glass and ceramics as solid fuel. We also reduced the amount of final disposal (landfill waste) by 1.2 t, by recycling waste as solid fuel. Recycling Final disposal Reduction of waste Landfill * Eco Rail Mark: The "Eco Rail Mark" is given to companies that use the railway for at least 15% 95% 5% less than 0.1% of their inland transportation (railway + truck) at distances of 500 km or longer. Modal shift rate and CO2 emissions compared to production 1.8 Use of rail transportation 1.75 54.4% 50 2,931t 2,872t -59t 2009 2010 3.0t 1.8t 30 1.59t 1.55 Total waste discharge amount 40 35.4% 1.6 2010 60 +19% 1.7 1.65 2009 CO2 emissions compared to production 1.5 1.45 2009 -0.07t 1.52t 20 10 2010 (t-co2/100 million yen) 0 (%) Environmental efforts in our maintenance/service activities We are expanding the use of "InnerVisionTM Plus", a remote maintenance system for monitoring the condition of a system inst alled at a customer's site, to prevent possible failures and to minimize movement of customer engineers and transportation of repair parts. These efforts led to reduction of transport-related CO2 emissions by 15.1 t compared to FY2009. Discharge amount of landfill waste -1.2t Using IT to reduce the number of business trips In October 2010, we introduced a high-definition video-conferencing system. This provides clear video images and audio to a higher standard than conventional video-conferencing systems, allowing employees to participate in smooth discussions without leaving their workplace. As a result, the number of overseas business trips per year has decreased, leading to a reduction in flights, rail, and other journeys. Reduction of CO2 emissions by use of a remote maintenance system 16 14 12 10 3 times greater reduction of CO2 emissions 8 6 4 2 0 2009 2010 (t-co2/100 million yen) TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 20 Communication Environmental Report As a corporate citizen of planet Earth, we continue to consider environmental issues with our stakeholders, with the goal of realizing a sustainable future for the "Green Day" campaign held at TMSE Paper placemat distributed at the company cafeteria Cakes with the "eco style" logo Participating in a biodiversity seminar On July 7, 2010, as part of our "Environment Month" activities, we invited a lecturer from the Tochigi Environmental Counselors Association to provide a biodiversity seminar at the TMSC Headquarters in Nasu, with the participation of about 160 employees. At the seminar, employees rediscovered the importance of preserving biodiversity in Nasu, a region rich in nature, while achieving continued business growth, and u n d e r s t o o d t h a t t h ey s h a r e a c o m m o n m o t i va t i o n fo r f u tu r e environmental activities. Participation in tree-planting activities on "Ashio Dozan Tree-Planting Day" On May 31, 2010, many employees of TMSC Headquarters participated in tree-planting activities at the site of a closed mine in Ashio, Tochigi Prefecture, planting 6,260 trees in total. This day is named "Ashio Dozan Tree-Planting Day" by Rengo Tochigi, which is promoting tree-planting at this site once poisoned by minerals from the mine. Its plan is to plant a total of 100,000 young trees in 100 years. It is difficult to repair a damaged environment, and mountains that have lost tree cover are flood-prone due to a lack of power to retain water. These activities h e l p e d t o r a i s e e m p l oye e s ' awa r e n e s s o f t h e i m p o r t a n c e o f environmental conservation. To enhance environmental activities, on March 4, 2011, Toshiba Medical Systems Europe held a "Green Day" campaign in which all employees participated. Each department introduced their environmental efforts, and TMSC's Chief Technology Executive visited the company to introduce activities by TMSC. On this day, paper placemats printed with environmental messages were distributed at the company cafeteria, and cakes with the "eco style" logo were sold. Through a variety of environmental events, employees promoted mutual communication and shared new environmental challenges. Students from a local elementary school visited our environmental facility On June 11, 2010, TMSC Headquarters held a tour of the wastewater treatment plant for a local elementary school, in response to their request to us to introduce our environmental facilities. Students learned how wastewater is treated through experiments to separate dirt using aggregating agents and by observing microorganisms with an electron microscope. We will continue to communicate the importance of environmental conservation to children. Visit to a local waste treatment facility On October 22, 2010, we visited a local waste treatment facility where waste from TMSC Headquarters and waste TMSC products are treated. Many employees participated in the event, reinforcing their awareness of the importance of waste reduction, careful choice of materials for products, and decomposability. Our deputy environmental management officers also participate in the event every year, urging employees to promote effective use of resources. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 21 Data Environmental Report We strive to improve environmental efficiency by collecting, compiling, and analyzing environmental impact data. The major environmental impacts of our business activities include the use of energy, use of chemical substances, emission of greenhouse gases, effluent discharge into public waters, and discharge of waste. By reducing these environmental impacts, we aim to build a recycling-oriented society. Environmental impact flow diagram in FY2010 Values in parentheses indicate differences from FY2009 results. ( )内は 2009 年度比較 Electricity Energy 2,080 million KWh(+1,760,000) Heavy oil Development/Design Energy 38.7Kℓ(−4.3) LPG CO2 Energy Input Output 129t(+2) Municipal water 7,604t(+1,454) Wastewater Production Water Greenhouse gases Effluent discharge 50,000m3(+4,000) 38,000m (−21,000) 3 Chemical substances 136t(−9) Sales/Distribution/Service Disposal Recycling Output 2,738t(−65) 1.8t(−1.2) Output Use of Products Landfill * Totals by Headquarters, the production base for Toshiba Medical Systems. The CO2 conversion factors used (for actual measurements) are those for FY2009 and 2010, respectively. We are assessing the costs and benefits of our environmental protection activities to serve as a guideline in our business activities. Toshiba Group has been implementing "environmental accounting", which assesses total investment expenditures and associated costs for environmental protection activities, to serve as a guideline in business activities. Toshiba Medical Systems Group, specifically, our eight group companies in Japan and overseas (offices with 30 or more employees), has also been implementing this system of accounting. We calculated the expenditure invested in FY2010 as the "Costs of promoting environmental activities", and the benefits resulting from these environmental protection activities as the "Benefits of promoting environmental activities". We will make every effort to further improve the precision of our environmental accounting. Environmental accounting report Costs of promoting environmental activities Classification Business area costs Breakdown ① Pollution prevention costs Content Investment expenditure Costs during the period Reduction of environmental impact ① to ③ Pollution of atmosphere, water quality, soil, etc. ② Global environment protection costs Prevention of global warming, protection of ozone layer, etc. ③ Resource circulation costs Effective use of resources, waste reduction, etc. Upstream/downstream costs Green procurement, recycling, etc. Administration costs Labor costs for environmental training, environmental protection, etc. Research and development costs Development of environmentally conscious products, etc. Social activity costs Tree planting, disclosure of information, etc. Environmental remediation costs Air pollution levy, etc. Total 130 0 130 0 3 0 371 52 200 119 192 179 0 0 0 133 1,684 0 0 2,426 Benefits of promoting environmental activities Classification Content Total Actual benefits Benefits that can be directly converted into a monetary amount, such as reductions in electricity and water charges -79 Assumed benefits Benefits concerning reduction in environmental impact converted into a monetary amount* -34 Customer benefits Benefits concerning reduction in environmental impact at the usage stage converted into a monetary amount 603 Risk prevention benefits Calculated value of reduction in environmental risk before and after investment 0 Total 491 Unit: million yen Breakdown of actual benefits Item Energy Reduction of *1 environmental impact -1405kℓ -120 218 t 38 Waste Water Benefits converted into a monetary amount 3 22,170m3 Total -79 Breakdown of assumed benefits Item Reduction of *1 environmental impact Wastewater-related -2.8 t Atmosphere-related 0.5 t Benefits converted into a monetary amount -35 1 Total -34 Breakdown of customer benefits Item Environmental impact reduction benefits at the usage stage Benefits converted *2 into a monetary amount 2,741 million kWh Benefits converted into a monetary amount 603 *1. Difference between FY2009 and FY2010 *2. Results in FY2010 ○ Target scope of totals: Toshiba Medical Systems Corporation and group companies in Japan and other countries (for offices with 30 or more employees) ○ Totaling period: April 1, 2010 to March 31, 2011 ○ Totaling method: Environmental protection costs according to the Ministry of the Environment's "Environmental Accounting System Guidelines", environmental protection benefits according to Toshiba Group's standards. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 22 Corporate Profile Company name Toshiba Medical Systems Corporation Founded October 1930 Incorporated September 1948 President and Chief Executive Officer Satoshi Tsunakawa Headquarters 1385 Shimoishigami, Otawara-shi, Tochigi-ken, JAPAN TEL +81-287-26-6211 Capital 20.7 billion yen Number of Group employees 7500 (as of March 31, 2011) Scope of business Development, manufacture, sale and technical services for medical equipment and systems (including diagnostic X-ray systems, X-ray CT systems, magnetic resonance imaging systems, diagnostic ultrasound systems, radiotherapy systems, diagnostic nuclear medicine systems, clinical laboratory systems, and information systems for medical institutions). http://www.toshiba-medical.co.jp Headquarters 1385 Shimoishigami, Otawara-shi, Tochigi-ken 324-8550, JAPAN Tel.: +81-287-26-6211 © Toshiba Medical Systems Corporation 2011 "Made for Life", "Aquilion", "RPP", "InnerVision", ●Headquarters and SI Center of Toshiba Medical Systems Corporation hold ISO 9001 and ISO 13485 certification, international standards for quality management systems. "Aplio", "Vantage Titan", "Alexion", "Pure Brain", ●Headquarters of Toshiba Medical Systems Corporation holds ISO 14001 certification, an international standard for environmental management systems. ●Headquarters of Toshiba Medical Systems Corporation holds OHSAS 18001 certification, an international standard for occupational health and safety management systems. "Infinix Celeve", and "Viamo" are trademarks of Toshiba Medical Systems Corporation. TOSHIBA MEDICAL SYSTEMS CSR REPORT 2011 23